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58
financial statements 2011
Notes to the Parent Company
Financial Statements
1. Accounting Policies
Applied to the Parent
Company’s Financial
Statements (
FAS
)
Basic Information
Edita Plc is a Finnish public limited company domi-
ciled in Helsinki and established in accordance with
Finnish law. Edita Plc’s financial statements have been
drawn up in accordance with the Finnish Accounting
Standards (FAS). Edita Plc is the Edita Group’s parent
company. The consolidated financial statements have
been drawn up in accordance with the latest IFRS
regulations. As the accounting policies of the FAS and
the IFRS are in most respects convergent in Edita Plc, a
description of the most important accounting policies
can be found in the accounting policies applied to the
consolidated financial statements.
Non-current Assets
Intangible and tangible assets are recognized in the
balance sheet at original cost less planned deprecia-
tion. Planned depreciation is calculated from original
acquisition values and estimated useful life. Land is not
depreciated. The depreciation periods are as follows:
Buildings and structures
30 years
Machinery and equipment
4–15 years
Other non-current expenditure
4–5 years
Investments and receivables with an estimated life of
over one year are presented under investments.
Any impairment requirement of non-current assets
is reviewed annually and an impairment is recognized
immediately when necessary.
Financial Assets
Cash and cash equivalents include cash in hand and at
the bank, deposits of less than three months and other
cash equivalents.
Shares and participations included in financial asset
securities are measured at the lower of cost or market
value.
Derivatives
Derivatives are measured at their nominal value, pro-
vided it is no more than the probable value.
Taxes
Income tax in the income statement is the tax on the
year’s profit/loss and tax adjustments from previous
years. Deferred taxes are not recognized in the parent
company’s accounts.
Pension Plans
The statutory and individual pension insurance of
parent company employees is arranged by external
pension insurance companies.
Extraordinary Items
The parent company’s extraordinary items include
contributions received from subsidiaries, subsidiaries’
dissolution profits and significant impairments to shares
in subsidiaries.